Pre-market update (updated 8:00am eastern):
- European markets are trading over 2.3% higher.
- Asian markets traded between 0.1% and 1.2% higher.
- US futures are up over 1% going into the open.
Economic reports due out (all times are eastern): Durable Goods Orders (8:30am), Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Pending Home Sales Index (10am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing Index (11am)
Technical Outlook (SPX):
- Despite another attempt to drive the markets lower, SPX managed to rebound and close near break even.
- 50-day moving average showing solid support over the past two trading sessions.
- At this point, SPX hasn’t actually put in a ‘lower-low’ yet, and is therefore still in an uptrend overall.
- Because of this, you want to be careful about how bearish you get until there is a legitimate breakdown in the market and not merely a pullback (which is what recent selling is at this point).
- 30-min SPX chart shows a double top followed by a bear-flag of late.
- Double top-formation coming together on SPX that could pose as trouble in the days ahead if confirmed with a close below 1334.
- Approaching short-term oversold, but intermediate and longer-term is no-where near such a reading.
- Bulls must hold 1325. A close below that level, and you have what would begin a new downtrend.
- On 7/18 we managed to break through the descending trend-line off of the 4/2 highs.
- Watch the SPRI that I posted this past Sunday and how it shows us near-ready for the reversal signal.
- Also note the price resistance the SPX is up against on the weekly chart.
- VIX pushed back below 20, but remains slightly elevated at this point.
My Opinions & Trades:
- Day-traded PZG and sold at $2.38 from $2.39 for a 0.4% loss.
- Sold AMTD at $15.48 from $15.35 for a 0.9% gain.
- Sold GS at $95.25 from $94.02 for a 1.3% gain.
- Bought HES yesterday at 45.60
- Shorted MWV at $28.50
Charts:
